Central Bank Japan uses wholesale price tracking as a tool to control inflation. Within the framework of this study, the index of corporate goods is calculated – the selling price of large shipments sold both within the country and in import-export transactions.
The indicator is calculated in relative units, in relation to the base prices of the year 2000. The Bank of Japan takes statistics from actually concluded credit supply agreements, prepayments and customs documents. Such extensive accounting levels the inflationary expectations set by manufacturers, takes into account competitiveness or dumping when supplying to international markets.
But the indicator itself is calculated based on a fixed basket of corporate goods, using weighting coefficients, by analogy with the algorithm of the producer price index. Goods purchased within the country, exported and imported are divided into three separate sub-indices, but corporate consumption is combined into a single calculation, regardless of the sector of the economy.
Frequency, time and format of publication of the Corporate Goods Price Index indicator
The Bank of Japan publishes the indicator value by the end of the first eight business days from the beginning of each month. Exit time news – 23: 50 GMT (3: 50 Moscow time), format-percentage change in price dynamics to the previous period. In the economic calendar the news is rated at one point on a three-point scale of significance and influence on the course yen.
The impact of the Corporate Goods Price Index indicator on the stock and Forex market
The price index for corporate goods is practically not taken into account by stock market investors and Forex currency traders, due to the pronounced correlations with other indicators of inflation levels. The growth of the actual values or their excess over the forecast data may strengthen the yen in the event of the immediate proximity of the Bank of Japan meeting about of the interest rate.
Also, bidders pay attention to the annual change in this parameter, which indicates a positive dynamics of the country's economy.